Evaluating China's regional energy and environmental efficiency by considering three internal parallel industries.

Environ Sci Pollut Res Int

College of Economics and Management, Research Centre for Soft Energy Science, Nanjing University of Aeronautics and Astronautics, Nanjing, 210000, Jiangsu Province, China.

Published: July 2022

AI Article Synopsis

  • - The growth of China's economy has resulted in high energy consumption and pollution, prompting research to assess energy and environmental efficiency for performance improvements.
  • - Previous studies generally treat regions as integrated units, failing to analyze the distinct contributions of primary, secondary, and tertiary industries, which this paper aims to address using a parallel data envelopment analysis (DEA) approach.
  • - Key findings indicate low overall energy efficiency in China, with poor performance in the primary and tertiary industries contributing to inefficiencies, and regional variations in energy efficiency where most provinces have inefficient sectors.

Article Abstract

With the rapid development of China's economy, high energy consumption and high pollution emission have become serious problems. To solve these problems, many studies have been done to evaluate energy and environmental efficiency, as the results can provide valuable information to improve performance. However, the previous research mainly evaluates China's regional energy and environmental efficiency by considering each region's industry as a whole system, ignoring the internal structure. In reality, each region mainly includes three parallel types of industry: primary, secondary, and tertiary. Therefore, this paper provides a parallel data envelopment analysis (DEA) approach to evaluate China's regional energy and environment efficiency by considering these parallel industrial systems. The following findings can be obtained based on the empirical results: (1) the overall energy efficiency of China is low, and the inefficiency of the economic system is mainly sourced from the lower energy and environmental performance of the primary industry and the tertiary industry. (2) the introduction of the environmental variable (CO) leads to the increase of some backward areas' efficiencies. (3) the energy efficiency of each provincial region is different, and most of them have their own inefficient industries. (4) the total factor productivity of China is declining, mainly because of the decline of technical efficiency.

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Source
http://dx.doi.org/10.1007/s11356-021-16899-4DOI Listing

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